HomeMy WebLinkAboutVI(B) Discussion/Action Re: Recommendation for Financing of Capital Improvements (
AGENDA 11-19-96
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item VI B
Ocoee J.jl.v 1 1 vt11V vnicl�K►r i
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O COMMISSIONERS
p .. CITY OF OCOEE RUSTYJOHNSON
.. ,4 ja SCOTT ANDERSON
O 150 N.LAKESHORE DRIVE SCOTT A.GLASS
Co �C� OCOEE,FLORIDA 34761 2258 JIM GLEASON
(407)656-2322
yA. , CITY MANAGER
�� OF G00��` ELLIS SHAPIRO
MEMORANDUM
TO: Honorable Mayor and Board of City Commissioners
FROM: Wanda B. Horton, Finance Director, 14� &
DATE: November 14, 1996
RE: Financing for Capital Improvements
At a special session of the City Commission held on August 23 ,
1996, the following capital improvements and related costs were
discussed.
Construction of Fire Station - District 3 $ 850, 000
Construction of Fire Station - District 4 $ 700, 000
Construction of Gymnasium & Recreation
Improvements $ 1, 500, 000
Construction of Public Works Facility $ 1. 350 , 000
TOTAL $ 4 , 400, 000
A request for proposal (RFP) for "Bank Qualified" financing of
these improvements for the City was advertised on October 8, 1996.
The criteria included:
* Fixed rate loan
* Flexibility for prepayment
. * Closing costs included in loan amount
The RFP was sent to seven financial institutions and two leasing
companies. Three responses were received. Attached is a summary
of the proposals. The originals are on file with the City Buyer,
Mark Brace.
Nations Bank submitted a no bid. Proposals were opened on October
22, 1996 from First Union National Bank of Florida and SunTrust
Bank.
An evaluation committee consisting of the City's Finance Director,
Financial Advisor, Finance Supervisor and Buyer reviewed the two
proposals. Discussions were held with representatives of the
institutions for clarification of the proposals. -
The committee evaluated the proposals based upon type of financing,
conditions, interest rates, loan term, financing costs, penalties
and flexibility. Based upon the attractive interest rate and the
flexibility to prepay anytime without penalty, SunTrust was ranked
#1 and First Union National Bank of Florida #2.
Action Recuested
The Mayor and Board of City Commissioners authorize staff to
proceed with documents for the purpose of securing financing from
SunTrust for the capital improvements identified . in this
memorandum, the results of which will be brought by Resolution to
the December 3 , 1996 commission meeting.
CITY OF OCOEE,FLORIDA
Summary of Bank Proposals
Capital System Improvement Program
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Estimated
Amount $4,400,000 $4,840,000
Construction
Proceeds $4,400,000 $4,400,000
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